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HomeMy WebLinkAbout05 AMENDMENT NO. 16 TO CONSULTANT SERVICES AGREEMENT WITH SO CAL SANDBAGS INC FOR PROPERTY MANAGEMENDocusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E �Y - -AGENDA REPORT MEETING DATE TO JUNE 3, 2025 ALDO E. SCHINDLER, CITY MANAGER Agenda Item 5 Initial Reviewed: a`L� City Manager Finance Director 9 FROM: BRIAN MONCRIEF, DEPUTY CITY MANAGER — REAL PROPERTY SUBJECT: AMENDMENT NO. 16 TO CONSULTANT SERVICES AGREEMENT WITH SO CAL SANDBAGS INC FOR PROPERTY MANAGEMENT/CARETAKER SERVICES AT TUSTIN LEGACY SUMMARY Amendment to existing Consultant Services Agreement with So Cal Sandbags, Inc. RECOMMENDATION It is recommended that the City Council authorize the City Manager to execute Amendment No. 16 to the Consultant Services Agreement with So Cal Sandbags, Inc. FISCAL IMPACT The cost of the Consultant Services Agreement will not exceed $528,000 in Fiscal Year 2025-2026. The proposed budget for Fiscal Year 2025-2026 allocates $528,000 for Tustin Legacy property management, providing adequate funding pending budget approval. CORRELATION TO THE STRATEGIC PLAN: The Consultant Services Agreement with So Cal Sandbags, Inc. contributes to the fulfillment of the City's Strategic Plan Goal A- Economic and Neighborhood Development. Specifically, this item implements Strategy 1, which is to develop critical phases of Tustin Legacy. The item also contributes to the fulfillment of Goal B: Public Safety and Protection of Assets. Specifically, this item implements Strategy 5 which is to create and implement a plan to protect the City's public assets. BACKGROUND AND DISCUSSION: Property Management at Tustin Legacy The City is responsible for managing and securing the property and facilities located at Tustin Legacy whether owned by the City and/or leased by the City from the Department of the Navy. The City currently manages approximately 580 acres. Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E City Council Agenda Report Amendment No. 16 to Consultant Services Agreement June 3, 2025 Page 2 Property management and caretaker services on City -maintained properties at Tustin Legacy continue to be an ongoing need of the City to ensure protection of public health and safety. Failure to ensure all erosion and sediment controls are properly installed and regularly maintained can subject the City to penalties of up to $10,000 a day and third -party lawsuits. Additionally, the City is responsible for maintaining regulatory permits obtained from the Regional Water Quality Control Board, U.S. Army Corps of Engineers, and the California Department of Fish & Game that were assumed from the former master developer, which provide the necessary authorizations to remove certain wetland channels across the property in support of development within Tustin Legacy. Property maintenance (i.e. weed control/abatement, litter removal) must continue to be performed to protect existing grading and fill sites that have been created for certain Tustin Legacy infrastructure improvements such as Tustin Ranch Road, Warner Avenue, Armstrong Avenue, Moffett Drive and proposed future pedestrian bridges. Access control to the property, maintenance of security fencing and gates, and maintenance of the South Hangar/Hangar 2 are also critical aspects of the property maintenance contract. The City will continue to maintain the property until it is developed and/or transferred to other parties. So Cal Sandbags Inc. has been successfully performing this contract role for the City since 2011. Contract History From 2012-2016, a series of annual contract amendments to the Consultant Services Agreement (CSA) with So Cal Sandbags Inc. were recommended to the City Council for approval that primarily adjusted the not -to -exceed contract amount based on changing property acreage. In 2016, the City initiated a Request for Proposals (RFP) process to determine if the market for property management and caretaker services had changed since the CSA was first executed. The City Council then authorized the City Manager to execute amendments to the CSA with So Cal Sandbags Inc. as long as the total compensation did not exceed $400,000 per Fiscal Year. From 2016-2021, the total annual contract amount continued to decrease and remained below $400,000. In 2021, the City Council approved Amendment No. 12 to the CSA with So Cal Sandbags, Inc. after the City voluntarily accepted property management responsibility for an additional 77 acres of Reuse Parcel 18. Amendment No. 12 raised the not -to -exceed amount of the CSA to $415,000 to cover the maintenance of additional acreage. City Council approval was required because the not -to -exceed amount surpassed $400,000. The City issued a new RFP in March 2022 to re-evaluate market pricing for property management and caretaker services since the last RFP process was released in 2016. So Cal Sandbags Inc. was selected to continue to provide property management services at Tustin Legacy at a new total of $528,000 per year, which was executed by a 13t' amendment to the existing CSA. Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E City Council Agenda Report Amendment No. 16 to Consultant Services Agreement June 3, 2025 Page 3 As proposed, Amendment No. 16 (Attachment 1) exceeds the $400,000 limit established by City Council in 2016 and therefore, it requires City Council approval. As property is disposed, overall property management costs should decrease. The City Manager is currently authorized to execute any future amendment under the $400,000 threshold and may re -bid the contract at any time. So Cal Sandbags Inc. has consistently delivered high -quality property maintenance and caretaker services, effectively safeguarding the City's interests at Tustin Legacy. The proposed pricing for the scope of services is reasonable and aligned with current market rates; therefore, approval of Amendment No. 16 is recommended. LSigned by: f Brian oncrief Deputy City Manager — Real Property FSigned by: / JasoKy" o Management Analyst II Attachments: F�Sig"edl by:by: �M19fYCG Kenn e�i'Y 1gVuee Real Property Manager 1. Amendment No. 16 to the CSA between the City and So Cal Sandbags, Inc. Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E AMENDMENT NO. 16 TO CONSULTANT SERVICES AGREEMENT FOR PROPERTY MANAGEMENT / CARETAKER SERVICES FOR A PORTION OF TUSTIN LEGACY This Amendment No. 16 to Consultant Services Agreement ("Amendment No. 16") is made and entered into by and between the City of Tustin, a municipal corporation ("City") and So Cal Sandbags, Inc., a California Corporation ("Consultant"). RECITALS 1. The City and So Cal Sandbags, Inc. ("Consultant") entered into that certain Consultant Services Agreement on January 3, 2011, as amended by that certain Amendment No. 1 dated as of June 19, 2011, by Amendment No. 2 dated as of July 26, 2012, by Amendment No. 3 dated as of June 18, 2013, by Amendment No. 4 dated September 29, 2014, by Amendment No. 5 dated as of July 2, 2015, by Amendment No. 6 dated as of June 28, 2016, by Amendment No. 7 dated July 5, 2017, by Amendment No. 8 dated July 19, 2018, by Amendment No. 9 dated July 9, 2019, by Amendment No. 10 dated June 15, 2020, by Amendment No. 11 dated June 18, 2021, by Amendment No. 12 dated January 2, 2022, by Amendment No. 13 dated May 18, 2022, by Amendment No. 14 dated June 24, 2023, and by Amendment No. 15 dated June 6, 2024 (as amended, the "Original Agreement"), and pursuant to which, Consultant agreed to provide property management and caretaker services for City -maintained properties located on a portion of Tustin Legacy. 2. In approving the Original Agreement, the City Council authorized that in the event that the City Service Area needed to be reduced as a result of construction or property transfers during the term of the Consultant Services Agreement, the City Manager is authorized to execute any Amendments to the Consultant Services Agreement. In 2016, the City Council authorized the City Manager to execute subsequent amendments to the Original Agreement as long as the contract does not exceed $400,000 per Fiscal Year. 3. Pursuant to Section 7 ("Term") of the Original Agreement, the agreement may be renewed annually, subject to budget appropriations, in accordance with the provisions set forth therein, including required agreement changes or modifications contained in Section 2.5 ("Changes"). The proposed budget includes sufficient funds for appropriation in Fiscal Year 2025-26. 4. Property management and caretaker services on City -maintained properties at Tustin Legacy continue to be an on -going need of the City to ensure protection of public health and safety. Failure to ensure all erosion and sediment controls are properly installed and regularly maintained can subject the City to penalties of up to $10,000 a day and third -party lawsuits. Additionally, the City is responsible for maintaining regulatory permits obtained from the Regional Water Quality Control Board, U.S. Army Corps of Engineers, and the California Department of Fish & Docusign Envelope ID: F2C6D98E-7421-4E6C-BD12-E4099DOE117E Game that were assumed from the former master developer which provide the necessary authorizations to remove certain wetland channels across the site in support of development within Tustin Legacy. Property maintenance (i.e. weed control/abatement, litter collection) must continue to be performed to protect existing grading and fill sites that have been created for certain Tustin Legacy infrastructure improvements such as Tustin Ranch Road, Warner Avenue, Armstrong Avenue, Moffett Drive and proposed pedestrian bridges. Access control to the property, maintenance of security fencing and gates and maintenance of Hangar 2 are also critical aspects of property maintenance. The City will need to maintain the property until it is developed and/or transferred to other parties. 5. Pursuant to Amendment No. 1, the original Service Area was modified to remove property associated with the Tustin Ranch Road Phase I Construction Project. Pursuant to Amendment No. 2, additional property was added back to the total Service Area to reflect the re -incorporation of certain properties due to changes in the Tustin Ranch Road Phase II Construction Project limits. Pursuant to Amendment No. 3, the Service Area was modified to reflect the removal of Disposition Parcels 1A-North and 2A plus the inclusion of adjacent properties formerly maintained by a separate contractor. Pursuant to Amendment No. 4, the Service Area was modified to reflect the removal of property associated with development of property in Disposition Parcels 1 B and 6A. Pursuant to Amendment No. 5, the Service Area was modified to reflect the removal of property associated with the new Army Reserve site, Warner Avenue and the addition of property associated with the Veterans Sports Park at Tustin Legacy as well as increased license activity at Hangar 2. The Service Area was not modified substantially for Amendment No. 6. Pursuant to Amendment No. 7, the Service Area was modified to reflect the removal of property associated with The Village at Tustin Legacy (22 acres), Tustin Legacy Park Phase 1 Segment 1 (11 acres), FLIGHT at Tustin Legacy (37 acres) and future site of the Tustin Unified School District Legacy Academy (40 acres). Pursuant to Amendment No. 8, the Service Area was modified to remove property associated with Levity at Tustin Legacy (15 acres), Veterans Sports Park (32 acres), and various new roads. Pursuant to Amendment No. 9, the Service Area was modified to remove property associated with Tustin Legacy Park Phase 1 Segment 2 (12 acres) and Moffett Drive (Tustin Ranch Road to Legacy Road); and adding back in property associated with FLIGHT Phase 2 (20 acres). Pursuant to Amendment No. 10, the Service Area was not changed; however, the former Army Reserve site was added as an optional location at no additional cost. The Service Area was not modified under Amendment No. 11. The Service Area was modified under Amendment No. 12 to include maintenance of Reuse Parcel 18 property, excluding the North Hangar/Hangar 1, for the balance of FY 21/22 as well as removing acreage associated with The Landing (25 acres). The Service Area was not modified under Amendment No. 14. The Service Area was modified under Amendment No. 15 to remove approximately 2 acres for the Alley Grove Promenade as well as the new 2 Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E public streets within Neighborhood D South. The Service Area will not be modified under Amendment No. 16. NOW, THEREFORE, based on the promises and mutual covenants herein, the parties agree as follows: AGREEMENT 1. Section 2.1: ("Compensation") of the Original Agreement is hereby amended to read: "2.1 Compensation. For the services rendered pursuant to this Agreement, Consultant shall be compensated and reimbursed consistent with the specific cost line items and requirements for operating costs, as more fully set forth in Exhibit C and which is incorporated herein by reference as though fully set forth herein, and which shall not in any event exceed a total compensation amount for a twelve month period of Five Hundred Twenty -Eight Thousand dollars ($528, 000). The monthly operating cost for the provision of caretaker/property management services shall also not exceed the amounts as set forth in Exhibit C. The "Not to Exceed Monthly Amount" is based on the estimated average for the year. Because of the seasonal nature of maintaining the site particularly due to rainfall, the "Not to Exceed Monthly Compensation Amount" in the dry months may not be reached. In "wet" months the effort to maintain the site by the Consultant may also result in the Consultant needing to apply additional resources and hours which would typically exceed the "Not to Exceed Monthly Compensation Amount". To recognize this variation of seasonal response, time and materials that do not get billed up to the "Not To Exceed Monthly Compensation Amount" in any one month (the "Monthly Surplus') as shown in Exhibit C may be applied, if determined and warranted by the City, to a subsequent month during the annual term of this Agreement based on a time and materials basis only. However, in no case shall the maximum "Not to Exceed Compensation Amount" for the year be exceeded. " 2. Exhibit "A" ("Service Area Map") of the Original Agreement is hereby replaced with the Service Area Map attached hereto as Exhibit "A". 3. Except as amended herein, all other terms and conditions of the Original Agreement and all the attachments and exhibits thereto shall remain in full force and effect and are not modified by this Amendment No. 16. Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E IN WITNESS WHEREOF, the parties have executed this Amendment No. 16 to be effective as of the dates stated below: CONSULTANT "So Cal Sandbags" Date Peter Rasinski President CITY OF TUSTIN Date Aldo E. Schindler City Manager APPROVED AS TO FORM: David E. Kendig City Attorney Docusign Envelope ID: F2C6D98E-7421-4E6C-BD1 2-E4099DOE1 17E Exhibit A City Service Area Map .� S14{fY ivy lowneci+t�'